Stormy sales: the influence of weather expectations on FMCG consumption
| Date | 22 July 2024 |
| Pages | 801-814 |
| DOI | https://doi.org/10.1108/JPBM-07-2023-4611 |
| Published date | 22 July 2024 |
| Author | Cony M. Ho,Kuan-Chou Ko,Steven Liu,Chun-Chieh Wu |
Stormy sales: the influence of weather
expectations on FMCG consumption
Cony M. Ho
Department of Information System, Management and Marketing, Northern Arizona University, Flagstaff, Arizona, USA
Kuan-Chou Ko
Department of Business Administration, National Taiwan University, Taipei, Taiwan
Steven Liu
Department of Marketing, Saint Cloud State University, Saint Cloud, Minnesota, USA and
Department of Information System, Management and Marketing, Northern Arizona University, Flagstaff, Arizona, USA, and
Chun-Chieh Wu
Department of Supply Chain Management, NKUST, Kaohsiung, Taiwan
Abstract
Purpose –This study aims to understand the impact of extreme weather events on fast-moving consumer goods (FMCG) consumption and to
examine the role of anticipated product scarcity and FMCG types on such behavior.
Design/methodology/approach –This paper conducted five studies, combining archival data analysis with behavioral experiments. The archival
data included sales data from a supermarket chain and weather data from the National WeatherService. The experiments were designed to test the
effect of extreme weather cues on consumption, the psychological mechanism behind this effect andmoderators.
Findings –This research found that consumers’anticipation of extreme weather events significantly increases their consumption ofFMCGs. This
research further discovered that these behaviors are driven by anticipated product scarcity and moderated by consumers’altruismsand FMCG types.
Research limitations/implications –Limitations of the research include the reliance on reported sales data and self-reported measures, which could
introduce biases. The authors also primarily focused on extreme weather events, leaving other types of disasters unexplored. Furthermore, cultural
differences in disaster response might influence results, yet the studies do not fully address these nuances. Despite these limitations, the findings provide
critical insights for FMCG retailers and policymakers, suggesting strategies for managing demand surges during disasters. Moreover, understanding
consumer behavior under impending disasters could inform intervention strategies, potentially mitigating panic buying and helping ensure equitable
resource distribution. Last, these findings encourage further exploration of environmental influences on consumer behavior.
Practical implications –The findings have practical implications for products, brand managers and retailers in managing stock levels and product
distribution during disasters. Furthermore, understanding the psychological mechanisms of these behaviors could inform policymakers’designs of
public interventions for equitable resource allocation during extreme weather events.
Social implications –The research provides significant social implications by highlighting how extreme weather events impact FMCG consumption. This
understanding can guide public policymakers in creating efficient disaster management plans. Specifically, anticipating surges in FMCG purchases can
inform policies for maintaining price stability and preventing resource shortages, mitigating societal stress during crises. Moreover, these findings encourage
public education around responsible purchasing during disasters, potentially reducing panic buying. By collaborating with FMCG manufacturers and
retailers, governments can ensure a steady supply of essentials during extreme weather events. Thus, the research can play a crucial role in enhancing
societal resilience in the face of impending disasters.
Originality/value –To the best of the authors’knowledge, this is the first study to integrate the impact of extreme weather events on consumption
behavior with the psychological theory of anticipated product scarcity. The unique focus on FMCGs offers a novel perspectiveon consumer behavior literature.
Keywords Disaster, Fast-moving consumer goods, Product scarcity, Altruism
Paper type Research paper
Introduction
With the escalation of climate change, the incidence of natural
disasters worldwide has significantly increased. Reports from
the Federal Emergency Management Agency indicate that
between 2013 and 2023, 1,252 such events occurred, often
resulting in substantial damage and costs (FEMA, 2023).
Hurricane Ian in 2022, for example,caused damages exceeding
$113.1bn, affecting the southeastern USA and Central
America significantly. As such, mitigatingthe severe losses and
The current issue and full text archiveof this journal is available on Emerald
Insight at: https://www.emerald.com/insight/1061-0421.htm
Journal of Product & Brand Management
33/7 (2024) 801–814
© Emerald Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-07-2023-4611]
Received 26 July 2023
Revised 27 November 2023
19 April 2024
22 May 2024
Accepted 26 May 2024
801
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